Cities all over the world are bemoaning the spread of big box stores like Wal-Mart and K-Mart, which detractors say drive mom-and-pop shops out of business.
Taipei, on the other hand, is seeing the proliferation of small box stores, which give people ranging from students to retired grandpas a chance to become entrepreneurs.
Box stores (格子店), which also translate as cube stores, are shops lined with cubbies that sellers rent and stock with their own merchandise. The trend took off last summer when Cardtek Digital Technology Group (網祿數碼科技集團) opened its first Check Fun (格子趣) near the corner of Shida and Roosevelt roads. In just one year, the chain has expanded to nearly 40 stores throughout Taiwan.
Jerry Tsai (蔡鎮州), the general manager of Cardtek, which also operates book rental chain Star (十大書坊), says that the lackluster economy helped box stores, which originated in Hong Kong and Japan, take off in Taiwan.
“Office workers might find that they need a second source of income, while store owners can’t afford to rent their own brick-and-mortar shop anymore,” Tsai says. Meanwhile, box stores lure in customers because lower overhead costs for sellers means cheaper prices and the eclectic selection of merchandise is entertaining to browse, Tsai says.
Check Fun started after Tsai returned from a trip to Shanghai in 2006, loaded with 50 boxes of merchandise that he planned to sell on Yahoo! Auctions. But he quickly discovered the pitfalls of online selling: the time-consuming process of photographing and listing merchandise, and the risk of customers who are unsatisfied with their purchase once they see it in real life.
Then Tsai read a magazine story about iSOLD It, an American company that lists items on eBay and ships sold items for clients. Tsai originally thought of opening a line of shops offering a similar service. “But then I thought if customers are already bringing in products for the store to hold onto until it is sold online, why not just sell it in the store?” Tsai says.
The first Check Fun opened in August last year and a quick volley of media attention helped attract vendors and customers. Tsai says that over the last year 10,000 people have rented cubes from Check Fun for varying lengths of time. Check Fun currently has about 3,000 vendors; rental fees range from NT$488 to NT$2,498 per month depending on the size of the cube and the location of the shop it is in.
OUT OF LITTLE ACORNS ...
The chain’s oldest seller is a 70-year-old grandfather who sells Buddhist prayer beads, while the youngest is a 12-year-old middle schooler who rented a cube at the Shida store to unload a collection of Happy Meal toys. Short-term renters include college students who want to get rid of their used textbooks, while long-term renters include Check Fun’s most successful vendor, who Tsai says pulls in up to NT$40,000 a month selling novelty lighters in each of the chain’s stores.
Inspired by the success of Check Fun, other business owners soon hopped on the box train. Huang Zhi-Lin (黃之琳) stopped selling crystal jewelry in her Taipei Main Station Front Underground Mall (站前地下街) shop in March, and turned the space into Vivid Cube (生洞), where 50 different vendors now rent boxes.
“I thought that a box store would be more appropriate for this location than a crystal shop because of all the young people here,” says Huang, referring to the many high school students who congregate in the mall to do their homework, practice dance routines or just hang out. Items available on a recent outing included a Shaun the Sheep (of Wallace and Gromit fame) stuffed toy for NT$390 and fabric cellphone covers and pencil bags in kawaii prints for NT$170 to NT$290.
Vivid Cube vendor Mickey Yen (顏美琪), an office worker, says that renting cubes in different stores has allowed her to start her own business, Mao Forest (喵森林), which sells zakka (雜貨) accessories and toys imported from Japan.
“This is a great location with a lot of passersby, but opening a standalone store here is out of my reach right now,” says Yen, who also sells on Yahoo! Auctions under the username maoforest630.
Box stores are trendy right now, but some store managers worry about the market becoming oversaturated.
“There are a lot of box stores right now, but you have to have your own distinct style in order to make a lasting impression,” says Lu Yen-tse (呂彥澤), the manager of Cube Republic (多寶格) on Zhongxiao East Road.
Box stores like Cube Republic and the Artcollec (集盒創意) chain seek to carve a niche for themselves by catering to an upmarket clientele.
Cube Republic, which opened two months ago, intends to stand out by focusing on the store’s atmosphere and the quality of the merchandise sold there. Cubes in the small but airy shop are lit and arranged like display cases in upscale department stores such as the nearby Sogo and backed by floor-to-ceiling windows to entice prospective customers.
Cherry Huang (黃莉樺) says that she picked Cube Republic because it matches the upscale image she wants to create for her fledging jewelry line, Dromma Resa.
“I care about setting up a good brand image and giving customers high-quality products, so I choose to sell only at Cube Republic because it matches my brand image,” says Huang, who is currently working in Thailand and sources her sterling silver jewelry while traveling for her job as a brand manager for a fashion company.
‘ENTREPRENEURIAL URGE’
Artcollec, which currently operates three stores in Taipei, focuses on handcrafted items, including custom fabric purses for NT$1,280 to NT$2,980 and handmade sterling silver jewelry for NT$5,000 to NT$10,000.
“We seek out artists and designers who are talented but might not be business savvy and tell them, ‘If you sell in our stores we will help you market your items,’” says Artcollec manager Jo Jim-An (周晉安).
Even after the initial flutter of media attention and consumer curiosity dies down, the company that launched the box store craze in Taiwan is optimistic that the retailing concept is here for the long haul. Check Fun plans to expand along with the Taipei MRT system, opening stores next to each new station. Tsai hopes the chain will have 200 shops across the country within three years.
“Even when the economy is not so great, people still have that entrepreneurial urge. We are here to provide a storefront and managers for them. All it takes to become a business owner is a few hundred or a couple thousand NT dollars every month,” Tsai says.
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